Final answer:
The correct term for when a check is processed and funds are deducted from the payer's account is that the check has 'cleared' the bank. Debit cards, credit cards, and smart cards function differently than checks, with debit cards drawing from checkable deposits, and credit cards offering short-term loans.
Step-by-step explanation:
When a check is presented to a bank for payment and the amount is deducted from the payer's account, the check is said to have cleared the bank. The term 'cleared' indicates that the check has been successfully processed, funds have been transferred from the payer's account to the payee's account, and there are sufficient funds available in the payer's account to cover the check amount.
In contrast to checks, 'plastic money' such as debit cards, credit cards, and smart cards, function differently. A debit card acts as an electronic instruction to transfer money directly from your bank account to the seller, being linked to checkable deposits that are considered money. A credit card, on the other hand, is not money but a form of short-term loan from the credit card company to the user, which needs to be paid back later. Lastly, a smart card allows you to store a certain value of money on the card and use it to make purchases.